How This Works
This generator pre-fills market-standard fund terms based on your strategy, fund size, and manager experience. Benchmarks are sourced from ILPA guidelines, Preqin data, and industry surveys. All terms are editable. Adjust anything that does not match your fund's specific structure.
Terms vary by geography, LP base, and negotiation dynamics. First-time managers typically offer more LP-friendly terms (higher GP commitment, European waterfall, stronger clawback) to build trust. Established managers with strong track records often negotiate tighter terms.
What LPs Look For
Institutional LPs evaluate fund terms holistically. A 2% management fee with a 1% GP commitment signals differently than a 2% fee with a 5% GP commitment. The combination of economics, governance, and alignment provisions tells LPs whether a manager is building a business or running an asset pool. For a deeper breakdown, see the full fundraising guide.
This generator produces a summary for discussion purposes only and does not constitute legal advice. All fund terms should be reviewed by qualified legal counsel and reflected in the Limited Partnership Agreement (LPA) before use.
